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Exchange rates ‘may trigger protectionism’

Gráinne Gilmore

November 4 2010, 12:00am, The Times

The global economy faces an increased threat of protectionism because of tensions over exchange rates, the heads of three international organisations will warn leaders of the G20 in a forthcoming report.

The warning comes from the World Trade Organisation (WTO), Organisation for Economic Co-operation and Development (OECD) and United Nations Conference on Trade and Development (Unctad), in a report on trade and investment commissioned by the G20 for its summit in Seoul next week.

This echoed a warning issued by the OECD yesterday in its latest update on the economy, cautioning that too many currency interventions could trigger protectionist policies. Angel Gurria, OECD secretary-general, said this would be “very damaging”.

The Paris-based group of the world’s most developed economies also warned that the economic crisis…